A CRM solution, also referred to as a “front office” solution, is an integrated combination of software, process redesign and organization changes applied across an enterprise to enable companies to optimally manage aspects of customer relationships. The purpose of the CRM solution is to provide reliable processes and procedures for interacting with customers. The CRM software application attempts to integrate and automate the various customer-serving processes within a company and typically involves automated processes, personal information gathering and processing, and self-service. A complete CRM solution also addresses the organizational elements of a company that support, motivate and help to manage employees who deal with customers.
A CRM solution typically addresses the general areas of a business including customer service, marketing information, and sales force management. The customer service aspects of the CRM solution automates some service requests, complaints, product returns, and information requests. The marketing aspect of the CRM solution helps companies track current and prospective customers, and automates the marketing campaign development, deployment and analysis functions. The sales force management aspect of the CRM solution automates some of the company's sales and sales force management functions and tracks sales staff performance as well as customer preferences, buying habits, and demographics.
Typically, a CRM solution encompasses all or most of the following technical functionality. CRM applications generally implement centralized data storage (e.g., a central database) so that all relevant customer interaction information can be easily stored and accessed. Most CRM solutions are scalable so that they can be implemented on a desired scale and reliably expanded as needed. CRM solutions usually implement multiple communication channels to provide the ability to communicate with and between customers and organizations employing over a variety of communications media. CRM solutions typically address the issue of workflow and provide the ability to automatically route work through the system to different people based on their roles within the company or other specified criteria.
CRM solutions can improve customer service and customer relations. For example, CRM solutions can improve customer service and customer relations by facilitating communication in a variety of ways including providing product information, product use information, and technical assistance on web sites for greater accessibility. CRM solutions can be used to identify and address customer complaints or potential problems, obtain customer feedback, and track customer interests, as well as to schedule customer interaction such as sales presentation or product maintenance and repair. Moreover, CRM solutions can be integrated into other cross-functional systems and thereby provide accounting and production information to customers or customer-facing employees when needed.
When any of these technology driven improvements in customer service, noted above, contribute to long-term customer satisfaction, they can ensure repeat purchases, improve customer relationships, increase customer loyalty, decrease customer turnover, decrease marketing costs (associated with customer acquisition), and increase sales revenue, thereby increasing profit margins.
As an example, a CRM solution may be applied to a company call center. A call center is a centralized office of a company that responds to customer communications. A call center typically includes a number of work stations that include digital processing systems (DPSs), telephones, and other communication or data storage devices. Many call centers use CRM software to store all of their customers' details. When a customer calls, the system can be used to retrieve and store information relevant to the customer. By serving the customer quickly and efficiently, and also by keeping all information pertaining to a customer in one place, a company realizes cost savings, improves customer satisfaction, and also encourages repeat purchases from current customers.
CRM solutions can also be used to allow customers to perform their own service via a variety of communication channels. For example, a customer may be able to check their account on-line, without interaction with company personnel, thereby saving time and associated costs.
The process through which CRM solutions are currently developed has serious disadvantages. A serious drawback in the way CRM solutions are currently developed is that the CRM solution developer, typically knows very little about the business for which the CRM solution is being developed. The developer merely offers various software alternatives in an attempt to meet the company's technical needs. Another disadvantage of current CRM solution development processes is that CRM solution developers employ a two-part process addressing the technological aspects of the CRM solution.
The first part of the development process involves defining the technological requirements and determining suitable technology to address those requirements. Typically the technology employed is selected from whatever known CRM solution developers have to offer, as is, or with modification. The second part of the development process involves creating and deploying the determined technology. The disadvantage with this approach is that no consideration is given to the current organizational or process effectiveness of the company as they relate to the proposed technology changes. This is especially disadvantageous in that technological deficiencies are rarely the sole or even major point of failure of CRM solutions. Therefore, adding technological improvements may only serve to increase costs without providing a corresponding benefit. For example, consider a company that currently out-sources its marketing functions to a vendor that provides all of its data gathering, data cleansing and data storage needs, as well as creating and deploying marketing programs. If the company decides to take the marketing function in-house, a typical CRM solution would be to design and install marketing software. Such an approach will not address the personnel and process issues that have to be addressed before cost savings can be realized.
Still another disadvantage of current CRM solution development processes is that typical conventional CRM solutions do not identify and track measurements of success (metrics). There is, therefore, no way to confirm that the CRM solution has accomplished the business goals of the company.